Recent World Bank analysis shows that taxes on petroleum products are a critical source of government revenue for low-income countries. And if the experience of industrial countries serves as any guide, the rates of these taxes will have to rise sharply...
See More +Recent World Bank analysis shows that taxes on petroleum products are a critical source of government revenue for low-income countries. And if the experience of industrial countries serves as any guide, the rates of these taxes will have to rise sharply as low-income economies develop. But policymakers must be mindful of how taxes (and subsides) affect the relative prices of fuels, since too large a difference in process between products cab lead to fuel switching and adulteration, adversely affecting the government tax take and pollution levels.
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